Abstract：In our earlier lesson we have covered Harmonic Patterns, which we said are a type of complex patterns that occur naturally in financial charts based on geometric price action and Fibonacci levels.
In our earlier lesson we have covered Harmonic Patterns, which we said are a type of complex patterns that occur naturally in financial charts based on geometric price action and Fibonacci levels. They were introduced to the trading world by Harold McKinley Gartley in 1932. These patterns also enable traders to distinguish possible areas for a continuation of the overall trend.
We also talked about the Six Harmonic Price Patterns
There are six harmonic price patterns:
The ABCD Pattern
The Three-Drive Pattern
The Gartley Pattern
The Crab Pattern
The Bat Pattern
The Butterfly Pattern
We were able to explain the 3-Step Price Pattern Recognition Process
The three basic steps in spotting harmonic price patterns include the following
Step 1: Locate a potential harmonic price pattern
Step 2: Measure the potential harmonic price pattern
Step 3: Buy or sell on the completion of the harmonic price pattern
Once more, harmonic price patterns are so accurate that they are very hard to figure out.
Added to knowing the steps, you need to have hawk-like eyes to point out potential harmonic price patterns and a lot of patience to stay away from jumping the gun and entering before the pattern is completed. Having adequate practice and experience, and trading using harmonic price patterns can result a lot of pips and profit in your forex trading.
Divergences in Trading
These champions have one thing in common: they not only work their butts off, but they also enjoy what they do.
"Patience is the key to everything," American comic Arnold H. Glasgow once quipped. The chicken is gotten by hatching the egg rather than crushing it."
Ask any Wall Street quant (the highly nerdy math and physics PhDs who build complicated algorithmic trading techniques) why there isn't a "holy grail" indicator, approach, or system that generates revenues on a regular basis.
We've designed the School of WikiFX as simple and enjoyable as possible to help you learn and comprehend the fundamental tools and best practices used by forex traders all over the world, but keep in mind that a tool or strategy is only as good as the person who uses it.